By Victor Ahiuma-Young

Justice Olufunke Yemi Anuwe of the National Industrial Court, NIC, has warned that employers who fail to remit or under-remit contributions to employees’ Pension Fund Administrators, PFAs, are liable under the law with very limited defences in court.

Justice Anuwe disclosed this during a presentation at the Fourth Forum of Company Secretaries and Legal Advisers in the Pension Industry, organised by the National Pension Commission, PenCom, in Abuja.

According to her, non-remittance or under-remittance of pension contributions remains one of the most litigated issues in Nigeria’s pension sector.

“Nigerian courts have consistently upheld the rights of PenCom and individual pension contributors to take legal action to recover unremitted pension funds. Statutory penalties and interest have also been enforced to ensure compliance,” she said.

Justice Anuwe emphasised that courts recognise PenCom’s regulatory authority as central to the effective administration of the Contributory Pension Scheme, CPS, while also expecting the Commission to operate within its statutory limits.

Citing Section 210 of the 1999 Constitution (as amended), she reminded stakeholders that pension entitlements are constitutional rights. “No person entitled to pension or gratuity under any law shall be denied such benefits. It is a constitutional right, and pensioners must be paid for the service they have rendered,” she asserted.

On legal jurisdiction, Justice Anuwe reaffirmed that the NIC has exclusive authority to adjudicate pension-related disputes, as established by the Constitution and the National Industrial Court Act. This consolidation, she said, has streamlined the resolution of pension disputes under a single specialised court.

She also addressed issues relating to gratuities, accrued rights, and the transition from old pension systems to the current Contributory Pension Scheme. According to her, the Pension Reform Act (PRA) is not retroactive unless explicitly stated, and legal obligations under the Act begin from its commencement date.

“The judiciary plays a critical role in ensuring fairness, transparency, and accountability in the interpretation and enforcement of the PRA and its regulations,” she concluded.

Earlier in her welcome address, PenCom Director General, Ms. Omolola Oloworaran, commended Justice Anuwe for her illuminating insights. She noted that the judge’s legal interpretations are invaluable in navigating Nigeria’s evolving pension landscape.

Ms. Oloworaran also highlighted the importance of the Forum in view of ongoing reforms to enhance corporate governance in the pension industry and the growing influence of judicial rulings on pension administration.